Long Position on DAVA @ $144.50 on 10/7/2021 (Momentum)

Endava plc (DAVA) provides technology services for clients in the consumer products, healthcare, mobility, and retail verticals in Europe, Latin America, North America, and internationally. 

The company offers technology and digital advisory services for payments and financial services, and TMT sectors; IT strategies; business analysis services; program management services; digital product strategy services; and architecture, extended reality, machine learning and artificial intelligence, product design, and user experience and visual design services.

It also engages in the identifying, defining, and embedding collaborative data and analytics; and provision of automated testing, cloud native software engineering, continuous delivery, distributed agile delivery, intelligent automation, secure development, agile applications management, cloud infrastructure, DevSecOps, service delivery, smart desk, and telemetry and monitoring services. 

On September 28th, Endava reported Quarter June 2021 earnings of $0.39 per share on revenue of $186.7 million. The consensus earnings estimate was $0.34 per share on revenue of $180.5 million.  Revenue grew 66.4% on a year-over-year basis.

The company said it expects first quarter earnings of $0.57 to $0.60 per share on revenue of $194.56 million to $197.29 million and fiscal 2022 earnings of $2.19 to $2.27 per share on revenue of $827.24 million to $836.76 million. The current consensus earnings estimate is $0.48 per share on revenue of $180.07 million for the quarter ending September 30, 2021 and $2.06 per share on revenue of $781.54 million for the year ending June 30, 2022.

Shaes are in the process of breaking out of their bullish "cup and handle." Higher share prices are expected.

Entry Point: $144.50

Stop Loss: $136.00

Trading Range: $60.01 - $147.95

Target Price: $159.00

Position closed on 10/29/2021 at price of $159.00 with a 10.03% gain in 22 days.

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